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PRODUCTION ORGANISATION &
HUMAN RESOURCES
MANAGEMENT
BSc. (Hons) in Quantity Surveying & Construction Management
RAJENDRA SASIRAJ
STUDENT ID: - 23047795
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 1
Acknowledgement
First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our
Production Organisation & Human Resources management Lecturer Mr. Gamini
Rajakaruna who gave me enormous guidance and support me continuously. It was really
helpful to me to complete this assignment successfully in a scheduled time.
Further extending my gratitude to ICBT for giving me a chance to study this degree program
offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the
Director, Lecturers and Staffs of ICBT.
I express my gratitude to my senior students clearing my doubts and also I never forget my
beloved parents at this time for allowing me to study and participate in this degree program to
improve my status in the society. Finally, I would like to thank my friends for incorporating
with me to complete my assignment
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 2
Contents
Acknowledgement .....................................................................................................................1
Contents .....................................................................................................................................2
Figure Contents..........................................................................................................................3
Executive Summery...................................................................................................................4
Introduction................................................................................................................................5
Question No.01 ..........................................................................................................................6
Question No.02 ..........................................................................................................................8
Question No.03 ........................................................................................................................10
Question No.04 ........................................................................................................................13
Question No.05 ........................................................................................................................14
Question No.06 ........................................................................................................................15
References................................................................................................................................16
Bibliography ............................................................................................................................18
Appendix..................................................................................................................................19
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 3
Figure Contents
Figure 1 - Triple constraints (ANON, n.d) ................................................................................6
Figure 2 - Main resources (Swarna, S.K., 2013) .......................................................................8
Figure 3 - Factors affecting cost overrun in construction (Memon, A.H., 2011) ......................9
Figure 4 - Recruitment process (Deepti Sharma, 2012) ..........................................................10
Figure 5 - Internal & external recruitment process (Deepti Sharma, 2012) ............................11
Figure 6 - Recruitment process affecting factors (Deepti Sharma, 2012) ...............................11
Figure 7 - Human resource development (ANON, 2012)........................................................12
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 4
Executive Summery
This assignment involves a submission of professional report, which contains six questions.
In the first question I explain about success of Company over the recent years based on the
given scenario with the respect to the achievement of triple constraints. Second question I
explain about main resources that the company should possess to succeed in its operation to
achieve its mission and their limitation of such acquisitions.
In the third question I explained about recruitment process with logical reasoning to acquire
human resources for different layers of operations; site work to management and how these
resources are developed and managed to accomplish the company mission. Fourth question I
explained about negative and positive impact of acquisition of own resources.
In the fifth question I explain how project management software could elevate the
management process in the company and the associate limitations in these software
applications. Final question for the company’s success I give my overall recommendation.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 5
Introduction
In the construction industry, production organization & human resource management are
considered as significant factors in projects. Company is specialized in housing projects.
They started public construction almost a decade ago and over the recent years the company
has earned a reputation for its commitment in bringing in projects to time to a high quality
standard. They have handled all the construction jobs with utmost care.
As per the issued scenario, and I assume myself as a consultant for this company. My
responsibility is to produce better output with respect to the achievement of triple constraints.
And I will putt all my effort and concern on proper and effective construction planning and
programming projects with the help of project planning and controlling software application,
do proper risk analysis in construction projects, monitor and control the sub contract works,
concern on proper recruitment process to acquire human resources for different layers of
operations; site work to management.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 6
Question No.01
In the construction industry, planning is considered as an essential and most challenging
activity in management and implementation of construction project. Planning activity
depending on size, type and complexity of a project (ANON, n.d). There should be proper
planning required to achieve the triple constraints
Figure 1 - Triple constraints (ANON, n.d)
As per the given scenario, Company is specialized in housing projects, over the recent years.
The company has earned a reputation for its commitment in bringing in projects to time, to a
high quality standard. They have done a proper planning in different stages such as; pretender
stage, pre contract stage and post contract stage
Pre Tender Planning Stage
In this stage company’s main aim is to find out whether the particular contract will bring
profit or not. They took this best opportunity and they did proper planning and realistic
programming to carryout work in future and finally they did proper Bid to get the project.
During the pre tender stage they attended the site visit and prepared a pre tender report,
studied the tender documents and did a market survey to find out the current prices and
availability of resources and other facilities, chose the most economical and suitable method
for executing activities, Prepared the tentative construction program, Finally they have
decided the profit and over heads to finalized the tender amount to finish the job within the
time frame.
Pre Contract Planning Stage
They improved pretender program into contract master program and displayed all the key
activity. Identified subcontractor requirements and prepared the procurement program for
each subcontractor. Found out the risk factors and prepared contingency plans
Post Contract Planning Stage
Company did the planning in the beginning of project and extended till completion of the
project. Here they did monitor and control all the work activities within the cost and time.
They established an effective and proper communication system with internal & external
stakeholders, selected the most effective & economic construction methods of work,
calculated and determined resource requirement for each activity and prepared the detailed
manpower recruitment for the various stages of work.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 7
Conclusion
Company’s main task is to manage the time, cost and quality to success the project.
Contractor should do planning in pre tender, pre&post contract planning and it is very
essential and also project manager should more concentrate on project phases such as
initation, planning, execution, monitoring & controlling and closing stage. In the preliminary
stage contractor should do a detailed study in project documents; BOQ, Drawings &
Spectification, etc. and prepare the plans (project, resources, finance, quality, risk,
acceptance, communication, procurement,etc) every stages and do proper costing in the
primary stage the decompose the project in several activities and recruite the suitables
employess and supervise and manage them well finally keep the project on track.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 8
Question No.02
There are four major resources; manpower, machinery, money and materials that company
should possess to succeed in operation to achieve their mission. There should be effective and
efficient deployment and allocation of a company's resources where and when they are
required.
Figure 2 - Main resources (Swarna, S.K., 2013)
Manpower
There should be a proper management technique to select and forecast the number and type
of employees required to achieve particular task, so the specialist in the company should
analyses the internal & external resources and company objective and do proper manpower
planning. Recruit qualified and skilled employees. (Dr.Shamil Naoum, 2001).
Machinery
Company key superintendents should be aware of selecting proper type, quantity and size of
machinery and equipment for their project because it will affect the time and effort. It will
reduce heavy manual work and produce the output in good quality. (Raghavendra, R. and
Shurthi, K., 2013)
Money
Company should consider money as an important factor. It is the primary resource required
for any activities in construction project. The project scope, design and specification relays
upon it, without this any project cannot be finished because cash flow impact the progress of
construction process. Without proper money management other resource becomes useless.
(Memon, A.H., 2011)
Material
Company should consider material as a core factor. Because it took considerable portion from
the total amount of project. Company superintendents should maintain a proper material
management plan and consider factors such as; project location, project size and cash flow,
etc. (Memon, A.H., 2011).
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 9
Figure No.03 illustrate the internal and external factors which affecting the main resources
for cost over run in the project
Figure 3 - Factors affecting cost overrun in construction (Memon, A.H., 2011)
Conclusion
According to contractor profit margin he can decide to hire or own the machineries &
equipment. It is not much complicated project so no need of high efficiency machineries &
equipment. For manpower company can recruit some qualified and skilled people internal &
external resources. Proper management and material planning required to reduce the waste
and increase the quality of the work. Proper cash flow require through the construction
process. Project manager should maintain the overall resource plan to track, monitor and
control the process to achieve the company mission.
If company is doing out sourcing, they should check the sub contractors pre tender, pre& post
contract plannings to find out whether they did proper pricing and planning for their work in
the project.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 10
Question No.03
Recruitment is a process of attracting, interviewing and hiring new qualified and skilled
employees. Aim of this process is to acquire the quality and number of employees in order to
support the organization to succeed its objectives and aims. It is a connection between job
seeker and the employer to make sure the selection of right applicant in right time at right
place.
Following are the types of recruitment needs;
1. Planned
2. Anticipated
3. Un expected
(Institute of Management & Professionals, n.d)
Figure No.04 Illustrate the recruitment process and facilitate the selection of best employees
for the organization purposes.
Figure 4 - Recruitment process (Deepti Sharma, 2012)
Two methods to select an employee for an organization are internal resourcing and external
resourcing. Promotion or transfer within the organization is known as internal resourcing.
Whereas selecting employees from out sources such as; hiring from manpower companiesor
by advertising is known as external resourcing.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 11
Figure No. 05 Illustrate the internal and external resourcing.
Figure 5 - Internal & external recruitment process (Deepti Sharma, 2012)
Recruitment process is governed and affected by external and internal factors. Internal factor
like; HR planning, recruitment cost, etc. These factors can manage and control by the
organization. External factor like; labour market, rate of employment, etc. These factors
cannot manage and control by organization.
Figure No. 06 Illustrate the internal and external factors affecting the recruitment process.
Figure 6 - Recruitment process affecting factors (Deepti Sharma, 2012)
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 12
Conclusion
company is keen on developing own knowledge and skill base, and they are acquiring human
resources from different layers operation site work to operation; site work to management.
Recruiting employees from internally in organization will helps to avoid communication
problems, and the workers experienced in organization objectives and goals if recruiting
employees from externally the mangers should consider their qualification and professional
experience.
Skilled, semi-skilled & un-skilled labourers should be evaluated with their ability and
performances. Selecting labourers are easy not much complicated compaired with selecting
managerial & technical engineers and staffs, because for the key staffs there should be a high
salary, concentration and time required in selection process.
Figure No.07 illustrate the activities carried out to improve the competency and skill level of
human resources of an organization.
Figure 7 - Human resource development (ANON, 2012)
After the recruitment of employees for different stages of operation, the management should
assign them to their places notify their jobs and responsibilities. During the project, staff and
workers performances have to be checked, if performances are poor management should
arrange in-house training programs and other special courses to projects staffs to gain
knowledge to perform well.There should be a leader to motivate and gudie them in a proper
path to achive the goal.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 13
Question No.04
Company’s profit margins are slightly below the industry average, their direct & direct cost
are increase because they highly depend own sub-contractors as per the expert professional
advice, they started acquisition of own resources.
Advantages of using own resources;
 Can minimize operational cost.
 Doing special works with proper training & guidance, workers will developed
(develop)their knowledge and gain experience finally become experts.
 Risk factor is less compared to subcontractors because they need coordination if any
bad communication with one Sub Contractor and if he did mistake ultimately it will
lead to problems and arguments finally it will delay the whole project.
 Own resources are permanent, company can use them anywhere and anytime if
required
Disadvantages of using own resources;
 Comparing with sub-contractors there will be more problems with using own
resources such as; taxes, workers social security contribution costs, depreciation cost,
maintenance cost, etc.
 In order to cut cost a company may recruit unskilled employees ,this can cause
inefficient work.
 Subcontractors may have specialized in their work,so that they may able to provide
the output with cost effective compare to using resources.
 Project manager needs more time to concentrate own resources instead of appointing
subcontractors. If any mistakes can cause project delay.
Conclusion
As per the profit margins contractor has to deicide type and quantity of resources to purchase
or not. Supervise and manage the resources and reduce the wastage in the project. Proper
communication with internal and external stakeholder to prevent from disputes. Proper
resource management and resource planning requiredotherwise project will get delayed and
become loss. Before starting the project, contractor should do prepare tender, pre & post
contract planning also to gain good profit margins. Contractor has to check subcontractor’s
quotation and planning to find out any mistakes occurs, if there let them revise the plan &
quotation and resubmit.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 14
Question No.05
In the construction industry, Project management software is one of the most supportive tools
which can elevate the management process and having much advantages such as; user can
easily access and control the activities, having high advance facilities, can combine many
project plans together in one system, it encourages the planners to be more efficient, assist
project managers for programming, scheduling, monitor, control and manage their projects
and within a short time period they can take wise decision, produce the output in graphical
view, can get maximum output, etc.
There are more than 300 project management software using in the world. (Find the best,
2014). Following is some famous project management software packages used by many
professional in the construction industry;
1. Microsoft project
2. Primavera
3. Adept Tracker
4. Procore Construction Software
5. Match ware mind View
6. Project Kick Start
Following are the major work carried out by project manager with project management
software;
1. Planning, Tracking and Monitoring
2. Project Calendar
3. Gantt Charts
4. Network Diagrams
5. Resource Sheet
6. Cost Baseline
7. Reports
8. What – if analysis
Conclusion
I have taken some considerable assumptions in this report such as; company will not
undertake ultra-modern or super luxury house projects and highrise buildings, there is no
much subcontractors involvement because project is not much complicated, project manager
is assign for one house project only, projects are located in near places and each project
manager will look after their project wisely and they will report to the head office. I suggest
them to use MS Project software for their construction project because it is very cheap
comparing to other software, project managers are reporting to head office only so no need to
have web connection or online monitoring. They are not constructing complicated projects so
it is very easy to handle this software, project manager can easily plan, track monitor and
control the project activities. From this software anyone can make quick study of this project
progress, can get the project reports in the standard format.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 15
Question No.06
Company should study the project related documents, prepare proper pretender, pre & post
contract planning. Project manager take more concern in every project phases, such as
initaion, planning, execution, montering & controlling and closing stage. Perform all the
necessary activities to achieve the triple constraint.
As per profit margin contractor can decide whether to hire or own the machineries &
equipment. Their projects are not complicated so no need of high efficiency machineries &
equipment. Company has to recruit some qualified and skilled people. Proper management
and material planning required to reduce the waste and increase the quality of the work. And
there should be a proper cash flow through the construction process. If company is doing out
sourcing, they should check the sub contractors pre tender, pre& post contract plannings to
find out whether they did proper pricing and planning for their work in the project. Project
manager should maintain the overall resource plan to track, monitor and control the process
to achieve the company mission.
Recruiting employees from internally in organization will helps to avoid communication
problems, and the workers experienced in organization objectives and goals if recruiting
employees from externally the mangers should consider their qualification and professional
experience. Skilled & un-skilled labourers should be evaluated based on their ability and
performances.
As per the profit margin contractor has decide to purchase own resources or not. Supervise
and manage the resources and reduce the wastage in the project. A proper communication
with internal and external stakeholder to prevent from disputes. Proper resource management
and resource planning ultimately project will not get delayed.
I have taken some considerable assumptions in question number five and I suggest them to
use MS Project software for their construction project because it is very cheap comparing to
other software, project managers are reporting to head office only so no need to have web
connection, it is very easy to handle this software, project manager can easily plan, track
monitor and control the project activities. From this software anyone can make quick study of
this project progress, can get the project reports in the standard format.
There should be a proper leadership it is very essential in the project to guide employees in a
proper path and each employees should be motivated to produce good output.
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 16
References
ANON(n.d). Construction Planning. [Online]. Last accessed 17 June 2014 at:
http://pmbook.ce.cmu.edu/09_Construction_Planning.html
ANON (n.d). Triple Constraint. [Online]. Last accessed 17 June 2014 at:
http://www.google.lk/imgres?imgurl=http%3A%2F%2Fsiliconbeach-
media.s3.amazonaws.co m%2Flegacy%2Fblog%2Fuploads%2F2012%2F11%2FQuality-
Cost-Time-
Triangle.jpg&imgrefurl=http%3A%2F%2Fwww.siliconbeachtraining.co.uk%2Fblog%2Fprin
ce-2-quality-trail&h=274&w=320&tbnid=v-
fY7dg4mDsmCM%3A&zoom=1&docid=QVds48C5A-
jv5M&ei=3j2iU4fBEIK0uASE_4CgAw&tbm=isch&ved=0CBcQMygAMAA&iact=rc&uact
=3&dur=536&page=1&start=0&ndsp=15
ANON (n.d). Human Resources Development .[Online]. Last accessed 18 June 2014 at:
http://www.google.lk/imgres?imgurl=http%3A%2F%2Fwww.globaledg.com%2Fimages%2F
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i=-
aeiU8iUJdWPuAT5qoDQCg&tbm=isch&ved=0CBgQMygBMAE&iact=rc&uact=3&dur=16
21&page=1&start=0&ndsp=18
Deepti Sharma (2012). The Concept of Recruitment .[Online]. Last accessed 18 June 2014 at:
http://www.slideshare.net/deeps_lucky/the-concept-of-recruitment
Dr.Shamil Naoum (2001). People and Organization Management in Construction. London,
New Delhi, Thomas Telford Limited. [Online]. Last accessed 18 June 2014
at:http://books.google.lk/books?id=_BjBzBw2IHMC&pg=PA266&lpg=PA266&dq=manpow
er+management+in+construction+industry&source=bl&ots=553-
fGHmsc&sig=U_h8zvdvwAirD4JZo_nEriLflig&hl=en&sa=X&ei=8MadU-
DqGoby8QXPzoKoBg&ved=0CCoQ6AEwAQ#v=onepage&q=manpower%20management
%20in%20construction%20industry&f=false
Find The Best (n.d). Compare Construction Management Software .[Online]. Last accessed
19 June 2014 at http://construction-project-management-software.findthebest.com/
Gahlot, P.S and Dhir, B.M (2002). Construction Planning and Management. 1st ed., New
Delhi, New Age International (P) Limited. [Online]. Last accessed 17 June 2014
at:http://books.google.lk/books?id=VoFwbFxbgeQC&pg=PA38&lpg=PA38&dq=pre+tender
+planning+pre+contract+planning+and+post+contract+planning&source=bl&ots=zGl--
QZBuA&sig=ezsqNK-TR7i-
78c1Jauu90XU47c&hl=en&sa=X&ei=UOmaU43rIoq68gWUgoGIDQ&ved=0CB0Q6AEwA
A#v=onepage&q&f=false
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 17
Institute of Management & Professionals (n.d).Recruitment and its process . [Online]. Last
accessed 18 June 2014 at: http://www.impglobal.org/media-room/recruitment-and-its-process
Memon, A.H (2011). Identifying Construction Resource Factors Affecting Construction Cost:
Case of johor. [Online]. Last accessed 18 June 2014 at:
https://www.academia.edu/2487728/Identifying_Construction_Resource_Factors_Affecting_
Construction_Cost_Case_of_johor
Raghavendra, R. and Shurthi, K (2013).Construction Equipment Management [Online]. Last
accessed 18 June 2014 at: http://www.slideshare.net/RAGHAVAN2/construction-equipment-
management
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2014 at: http://www.slideshare.net/swetha110/tresource
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BSc (Hons) in Quantity Surveying & Construction Management Page 18
Bibliography
Garry Sandhu (2012). HR Recruitment .[Online]. Last accessed 18 June 2014 at:
http://www.slideshare.net/GarrySandhu1/hr-recruitment-11668308
HR Management Guide, (n.d). Recruitment Process. [Online]. Last accessed 18 June 2014 at:
http://www.simplehrguide.com/recruitment-definition.html
Jeff Wuorio (n.d). Project Management Software Benefits .[Online]. Last accessed 19 June
2014 at: http://www.microsoft.com/business/en-us/resources/technology/business-
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Julian Hooks (2013). Project Management Software Advantages and disadvantages
.[Online]. Last accessed 19 June 2014 at: https://smallbusiness.yahoo.com/advisor/project-
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Management Study Guide (2013). Advantages of Planning .[Online]. Last accessed 17 June
2014 at: http://www.managementstudyguide.com/planning_advantages.htm
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accessed 17 June 2014 at: http://www.managementstudyguide.com/planning_advantages.htm
Naukrihub (2014). Meaning of Recruitment .[Online]. Last accessed 18 June 2014 at:
http://www.naukrihub.com/recruitment/meaning-of-recruitment.html
Patricia Lotich (2012). Advantages and Disadvantages of Outsourcing .[Online]. Last
accessed 19 June 2014 at: http://smartchurchmanagement.com/advantages-and-
disadvantages-of-outsourcing/
PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT
BSc (Hons) in Quantity Surveying & Construction Management Page 19
Appendix
Gantt Chart
ID Task Name Start Finish Duration
Jun 2014
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
1 2d6/13/201412-Jun-14Detail study
2 2d6/16/20146/13/2014Data gathering
3 1d17-Jun-146/17/2014Question 1
4 1d18-Jun-146/18/2014Question 2
5 2d6/20/20146/19/2014Question 3
6 1d6/20/20146/20/2014Question 4
7 1d23-Jun-146/23/2014Question 5
9 1d6/25/20146/25/2014Finalizing
8 1d24-Jun-146/24/2014Question 6

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Production Organisation and Human Resources Management

  • 1. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc. (Hons) in Quantity Surveying & Construction Management RAJENDRA SASIRAJ STUDENT ID: - 23047795
  • 2. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 1 Acknowledgement First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our Production Organisation & Human Resources management Lecturer Mr. Gamini Rajakaruna who gave me enormous guidance and support me continuously. It was really helpful to me to complete this assignment successfully in a scheduled time. Further extending my gratitude to ICBT for giving me a chance to study this degree program offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the Director, Lecturers and Staffs of ICBT. I express my gratitude to my senior students clearing my doubts and also I never forget my beloved parents at this time for allowing me to study and participate in this degree program to improve my status in the society. Finally, I would like to thank my friends for incorporating with me to complete my assignment
  • 3. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 2 Contents Acknowledgement .....................................................................................................................1 Contents .....................................................................................................................................2 Figure Contents..........................................................................................................................3 Executive Summery...................................................................................................................4 Introduction................................................................................................................................5 Question No.01 ..........................................................................................................................6 Question No.02 ..........................................................................................................................8 Question No.03 ........................................................................................................................10 Question No.04 ........................................................................................................................13 Question No.05 ........................................................................................................................14 Question No.06 ........................................................................................................................15 References................................................................................................................................16 Bibliography ............................................................................................................................18 Appendix..................................................................................................................................19
  • 4. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 3 Figure Contents Figure 1 - Triple constraints (ANON, n.d) ................................................................................6 Figure 2 - Main resources (Swarna, S.K., 2013) .......................................................................8 Figure 3 - Factors affecting cost overrun in construction (Memon, A.H., 2011) ......................9 Figure 4 - Recruitment process (Deepti Sharma, 2012) ..........................................................10 Figure 5 - Internal & external recruitment process (Deepti Sharma, 2012) ............................11 Figure 6 - Recruitment process affecting factors (Deepti Sharma, 2012) ...............................11 Figure 7 - Human resource development (ANON, 2012)........................................................12
  • 5. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 4 Executive Summery This assignment involves a submission of professional report, which contains six questions. In the first question I explain about success of Company over the recent years based on the given scenario with the respect to the achievement of triple constraints. Second question I explain about main resources that the company should possess to succeed in its operation to achieve its mission and their limitation of such acquisitions. In the third question I explained about recruitment process with logical reasoning to acquire human resources for different layers of operations; site work to management and how these resources are developed and managed to accomplish the company mission. Fourth question I explained about negative and positive impact of acquisition of own resources. In the fifth question I explain how project management software could elevate the management process in the company and the associate limitations in these software applications. Final question for the company’s success I give my overall recommendation.
  • 6. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 5 Introduction In the construction industry, production organization & human resource management are considered as significant factors in projects. Company is specialized in housing projects. They started public construction almost a decade ago and over the recent years the company has earned a reputation for its commitment in bringing in projects to time to a high quality standard. They have handled all the construction jobs with utmost care. As per the issued scenario, and I assume myself as a consultant for this company. My responsibility is to produce better output with respect to the achievement of triple constraints. And I will putt all my effort and concern on proper and effective construction planning and programming projects with the help of project planning and controlling software application, do proper risk analysis in construction projects, monitor and control the sub contract works, concern on proper recruitment process to acquire human resources for different layers of operations; site work to management.
  • 7. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 6 Question No.01 In the construction industry, planning is considered as an essential and most challenging activity in management and implementation of construction project. Planning activity depending on size, type and complexity of a project (ANON, n.d). There should be proper planning required to achieve the triple constraints Figure 1 - Triple constraints (ANON, n.d) As per the given scenario, Company is specialized in housing projects, over the recent years. The company has earned a reputation for its commitment in bringing in projects to time, to a high quality standard. They have done a proper planning in different stages such as; pretender stage, pre contract stage and post contract stage Pre Tender Planning Stage In this stage company’s main aim is to find out whether the particular contract will bring profit or not. They took this best opportunity and they did proper planning and realistic programming to carryout work in future and finally they did proper Bid to get the project. During the pre tender stage they attended the site visit and prepared a pre tender report, studied the tender documents and did a market survey to find out the current prices and availability of resources and other facilities, chose the most economical and suitable method for executing activities, Prepared the tentative construction program, Finally they have decided the profit and over heads to finalized the tender amount to finish the job within the time frame. Pre Contract Planning Stage They improved pretender program into contract master program and displayed all the key activity. Identified subcontractor requirements and prepared the procurement program for each subcontractor. Found out the risk factors and prepared contingency plans Post Contract Planning Stage Company did the planning in the beginning of project and extended till completion of the project. Here they did monitor and control all the work activities within the cost and time. They established an effective and proper communication system with internal & external stakeholders, selected the most effective & economic construction methods of work, calculated and determined resource requirement for each activity and prepared the detailed manpower recruitment for the various stages of work.
  • 8. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 7 Conclusion Company’s main task is to manage the time, cost and quality to success the project. Contractor should do planning in pre tender, pre&post contract planning and it is very essential and also project manager should more concentrate on project phases such as initation, planning, execution, monitoring & controlling and closing stage. In the preliminary stage contractor should do a detailed study in project documents; BOQ, Drawings & Spectification, etc. and prepare the plans (project, resources, finance, quality, risk, acceptance, communication, procurement,etc) every stages and do proper costing in the primary stage the decompose the project in several activities and recruite the suitables employess and supervise and manage them well finally keep the project on track.
  • 9. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 8 Question No.02 There are four major resources; manpower, machinery, money and materials that company should possess to succeed in operation to achieve their mission. There should be effective and efficient deployment and allocation of a company's resources where and when they are required. Figure 2 - Main resources (Swarna, S.K., 2013) Manpower There should be a proper management technique to select and forecast the number and type of employees required to achieve particular task, so the specialist in the company should analyses the internal & external resources and company objective and do proper manpower planning. Recruit qualified and skilled employees. (Dr.Shamil Naoum, 2001). Machinery Company key superintendents should be aware of selecting proper type, quantity and size of machinery and equipment for their project because it will affect the time and effort. It will reduce heavy manual work and produce the output in good quality. (Raghavendra, R. and Shurthi, K., 2013) Money Company should consider money as an important factor. It is the primary resource required for any activities in construction project. The project scope, design and specification relays upon it, without this any project cannot be finished because cash flow impact the progress of construction process. Without proper money management other resource becomes useless. (Memon, A.H., 2011) Material Company should consider material as a core factor. Because it took considerable portion from the total amount of project. Company superintendents should maintain a proper material management plan and consider factors such as; project location, project size and cash flow, etc. (Memon, A.H., 2011).
  • 10. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 9 Figure No.03 illustrate the internal and external factors which affecting the main resources for cost over run in the project Figure 3 - Factors affecting cost overrun in construction (Memon, A.H., 2011) Conclusion According to contractor profit margin he can decide to hire or own the machineries & equipment. It is not much complicated project so no need of high efficiency machineries & equipment. For manpower company can recruit some qualified and skilled people internal & external resources. Proper management and material planning required to reduce the waste and increase the quality of the work. Proper cash flow require through the construction process. Project manager should maintain the overall resource plan to track, monitor and control the process to achieve the company mission. If company is doing out sourcing, they should check the sub contractors pre tender, pre& post contract plannings to find out whether they did proper pricing and planning for their work in the project.
  • 11. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 10 Question No.03 Recruitment is a process of attracting, interviewing and hiring new qualified and skilled employees. Aim of this process is to acquire the quality and number of employees in order to support the organization to succeed its objectives and aims. It is a connection between job seeker and the employer to make sure the selection of right applicant in right time at right place. Following are the types of recruitment needs; 1. Planned 2. Anticipated 3. Un expected (Institute of Management & Professionals, n.d) Figure No.04 Illustrate the recruitment process and facilitate the selection of best employees for the organization purposes. Figure 4 - Recruitment process (Deepti Sharma, 2012) Two methods to select an employee for an organization are internal resourcing and external resourcing. Promotion or transfer within the organization is known as internal resourcing. Whereas selecting employees from out sources such as; hiring from manpower companiesor by advertising is known as external resourcing.
  • 12. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 11 Figure No. 05 Illustrate the internal and external resourcing. Figure 5 - Internal & external recruitment process (Deepti Sharma, 2012) Recruitment process is governed and affected by external and internal factors. Internal factor like; HR planning, recruitment cost, etc. These factors can manage and control by the organization. External factor like; labour market, rate of employment, etc. These factors cannot manage and control by organization. Figure No. 06 Illustrate the internal and external factors affecting the recruitment process. Figure 6 - Recruitment process affecting factors (Deepti Sharma, 2012)
  • 13. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 12 Conclusion company is keen on developing own knowledge and skill base, and they are acquiring human resources from different layers operation site work to operation; site work to management. Recruiting employees from internally in organization will helps to avoid communication problems, and the workers experienced in organization objectives and goals if recruiting employees from externally the mangers should consider their qualification and professional experience. Skilled, semi-skilled & un-skilled labourers should be evaluated with their ability and performances. Selecting labourers are easy not much complicated compaired with selecting managerial & technical engineers and staffs, because for the key staffs there should be a high salary, concentration and time required in selection process. Figure No.07 illustrate the activities carried out to improve the competency and skill level of human resources of an organization. Figure 7 - Human resource development (ANON, 2012) After the recruitment of employees for different stages of operation, the management should assign them to their places notify their jobs and responsibilities. During the project, staff and workers performances have to be checked, if performances are poor management should arrange in-house training programs and other special courses to projects staffs to gain knowledge to perform well.There should be a leader to motivate and gudie them in a proper path to achive the goal.
  • 14. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 13 Question No.04 Company’s profit margins are slightly below the industry average, their direct & direct cost are increase because they highly depend own sub-contractors as per the expert professional advice, they started acquisition of own resources. Advantages of using own resources;  Can minimize operational cost.  Doing special works with proper training & guidance, workers will developed (develop)their knowledge and gain experience finally become experts.  Risk factor is less compared to subcontractors because they need coordination if any bad communication with one Sub Contractor and if he did mistake ultimately it will lead to problems and arguments finally it will delay the whole project.  Own resources are permanent, company can use them anywhere and anytime if required Disadvantages of using own resources;  Comparing with sub-contractors there will be more problems with using own resources such as; taxes, workers social security contribution costs, depreciation cost, maintenance cost, etc.  In order to cut cost a company may recruit unskilled employees ,this can cause inefficient work.  Subcontractors may have specialized in their work,so that they may able to provide the output with cost effective compare to using resources.  Project manager needs more time to concentrate own resources instead of appointing subcontractors. If any mistakes can cause project delay. Conclusion As per the profit margins contractor has to deicide type and quantity of resources to purchase or not. Supervise and manage the resources and reduce the wastage in the project. Proper communication with internal and external stakeholder to prevent from disputes. Proper resource management and resource planning requiredotherwise project will get delayed and become loss. Before starting the project, contractor should do prepare tender, pre & post contract planning also to gain good profit margins. Contractor has to check subcontractor’s quotation and planning to find out any mistakes occurs, if there let them revise the plan & quotation and resubmit.
  • 15. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 14 Question No.05 In the construction industry, Project management software is one of the most supportive tools which can elevate the management process and having much advantages such as; user can easily access and control the activities, having high advance facilities, can combine many project plans together in one system, it encourages the planners to be more efficient, assist project managers for programming, scheduling, monitor, control and manage their projects and within a short time period they can take wise decision, produce the output in graphical view, can get maximum output, etc. There are more than 300 project management software using in the world. (Find the best, 2014). Following is some famous project management software packages used by many professional in the construction industry; 1. Microsoft project 2. Primavera 3. Adept Tracker 4. Procore Construction Software 5. Match ware mind View 6. Project Kick Start Following are the major work carried out by project manager with project management software; 1. Planning, Tracking and Monitoring 2. Project Calendar 3. Gantt Charts 4. Network Diagrams 5. Resource Sheet 6. Cost Baseline 7. Reports 8. What – if analysis Conclusion I have taken some considerable assumptions in this report such as; company will not undertake ultra-modern or super luxury house projects and highrise buildings, there is no much subcontractors involvement because project is not much complicated, project manager is assign for one house project only, projects are located in near places and each project manager will look after their project wisely and they will report to the head office. I suggest them to use MS Project software for their construction project because it is very cheap comparing to other software, project managers are reporting to head office only so no need to have web connection or online monitoring. They are not constructing complicated projects so it is very easy to handle this software, project manager can easily plan, track monitor and control the project activities. From this software anyone can make quick study of this project progress, can get the project reports in the standard format.
  • 16. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 15 Question No.06 Company should study the project related documents, prepare proper pretender, pre & post contract planning. Project manager take more concern in every project phases, such as initaion, planning, execution, montering & controlling and closing stage. Perform all the necessary activities to achieve the triple constraint. As per profit margin contractor can decide whether to hire or own the machineries & equipment. Their projects are not complicated so no need of high efficiency machineries & equipment. Company has to recruit some qualified and skilled people. Proper management and material planning required to reduce the waste and increase the quality of the work. And there should be a proper cash flow through the construction process. If company is doing out sourcing, they should check the sub contractors pre tender, pre& post contract plannings to find out whether they did proper pricing and planning for their work in the project. Project manager should maintain the overall resource plan to track, monitor and control the process to achieve the company mission. Recruiting employees from internally in organization will helps to avoid communication problems, and the workers experienced in organization objectives and goals if recruiting employees from externally the mangers should consider their qualification and professional experience. Skilled & un-skilled labourers should be evaluated based on their ability and performances. As per the profit margin contractor has decide to purchase own resources or not. Supervise and manage the resources and reduce the wastage in the project. A proper communication with internal and external stakeholder to prevent from disputes. Proper resource management and resource planning ultimately project will not get delayed. I have taken some considerable assumptions in question number five and I suggest them to use MS Project software for their construction project because it is very cheap comparing to other software, project managers are reporting to head office only so no need to have web connection, it is very easy to handle this software, project manager can easily plan, track monitor and control the project activities. From this software anyone can make quick study of this project progress, can get the project reports in the standard format. There should be a proper leadership it is very essential in the project to guide employees in a proper path and each employees should be motivated to produce good output.
  • 17. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 16 References ANON(n.d). Construction Planning. [Online]. Last accessed 17 June 2014 at: http://pmbook.ce.cmu.edu/09_Construction_Planning.html ANON (n.d). Triple Constraint. [Online]. Last accessed 17 June 2014 at: http://www.google.lk/imgres?imgurl=http%3A%2F%2Fsiliconbeach- media.s3.amazonaws.co m%2Flegacy%2Fblog%2Fuploads%2F2012%2F11%2FQuality- Cost-Time- Triangle.jpg&imgrefurl=http%3A%2F%2Fwww.siliconbeachtraining.co.uk%2Fblog%2Fprin ce-2-quality-trail&h=274&w=320&tbnid=v- fY7dg4mDsmCM%3A&zoom=1&docid=QVds48C5A- jv5M&ei=3j2iU4fBEIK0uASE_4CgAw&tbm=isch&ved=0CBcQMygAMAA&iact=rc&uact =3&dur=536&page=1&start=0&ndsp=15 ANON (n.d). Human Resources Development .[Online]. Last accessed 18 June 2014 at: http://www.google.lk/imgres?imgurl=http%3A%2F%2Fwww.globaledg.com%2Fimages%2F talent.diagram2.gif&imgrefurl=http%3A%2F%2Fhrdalternatives.wordpress.com%2Fabout% 2F&h=476&w=432&tbnid=dxZynsxTxeYNPM%3A&zoom=1&docid=v3u2kiB7Ees5eM&e i=- aeiU8iUJdWPuAT5qoDQCg&tbm=isch&ved=0CBgQMygBMAE&iact=rc&uact=3&dur=16 21&page=1&start=0&ndsp=18 Deepti Sharma (2012). The Concept of Recruitment .[Online]. Last accessed 18 June 2014 at: http://www.slideshare.net/deeps_lucky/the-concept-of-recruitment Dr.Shamil Naoum (2001). People and Organization Management in Construction. London, New Delhi, Thomas Telford Limited. [Online]. Last accessed 18 June 2014 at:http://books.google.lk/books?id=_BjBzBw2IHMC&pg=PA266&lpg=PA266&dq=manpow er+management+in+construction+industry&source=bl&ots=553- fGHmsc&sig=U_h8zvdvwAirD4JZo_nEriLflig&hl=en&sa=X&ei=8MadU- DqGoby8QXPzoKoBg&ved=0CCoQ6AEwAQ#v=onepage&q=manpower%20management %20in%20construction%20industry&f=false Find The Best (n.d). Compare Construction Management Software .[Online]. Last accessed 19 June 2014 at http://construction-project-management-software.findthebest.com/ Gahlot, P.S and Dhir, B.M (2002). Construction Planning and Management. 1st ed., New Delhi, New Age International (P) Limited. [Online]. Last accessed 17 June 2014 at:http://books.google.lk/books?id=VoFwbFxbgeQC&pg=PA38&lpg=PA38&dq=pre+tender +planning+pre+contract+planning+and+post+contract+planning&source=bl&ots=zGl-- QZBuA&sig=ezsqNK-TR7i- 78c1Jauu90XU47c&hl=en&sa=X&ei=UOmaU43rIoq68gWUgoGIDQ&ved=0CB0Q6AEwA A#v=onepage&q&f=false
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  • 20. PRODUCTION ORGANISATION & HUMAN RESOURCES MANAGEMENT BSc (Hons) in Quantity Surveying & Construction Management Page 19 Appendix Gantt Chart ID Task Name Start Finish Duration Jun 2014 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 1 2d6/13/201412-Jun-14Detail study 2 2d6/16/20146/13/2014Data gathering 3 1d17-Jun-146/17/2014Question 1 4 1d18-Jun-146/18/2014Question 2 5 2d6/20/20146/19/2014Question 3 6 1d6/20/20146/20/2014Question 4 7 1d23-Jun-146/23/2014Question 5 9 1d6/25/20146/25/2014Finalizing 8 1d24-Jun-146/24/2014Question 6